We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Double helping of losses for Freeserve

Unmetered access costing it £2.50 per customer

Home grown ISP Freeserve has announced pre-tax losses of £17.8m representing more than a two-fold increase for the first quarter of the year.

The company’s spiralling losses were revealed against a background of its continued support for unmetered access which is costing the company around £2.50 per month per subscriber.

Many ISPs have questioned the logic of providing a flat rate model while BT maintains its per-minute rate for use of its networks.

AltaVista was forced to abort its own much-hyped unmetered launch last month blaming BT for the fiasco.

Freeserve is claiming more than a quarter of a million users for its flat rate service, with more than two million subscribers overall.

"As we extend the availability of unmetered access we will drive more users to our portals, reduce our churn, increase time online and generate higher e-commerce and advertising revenues," said Freeserve chief executive John Pluthero.

The company claims it will start to make a profit on its unmetered offerings by the beginning of next year, following the introduction of BT’s wholesale pricing scheme for ISPs.


IDG UK Sites

Windows 10 launch event as it happened: Read our Windows 10 launch live blog - find out first as...

IDG UK Sites

Windows 9 and the death of the OS as a must-have product

IDG UK Sites

Video trends: 4K is here – HDR video, VR and 3D audio is coming

IDG UK Sites

Best iPhone 6, iPhone 6 Plus deals: iPhone 6, iPhone 6 Plus tariffs, contracts and prices UK